CLA-2-94:OT:RR:NC:N4:433
John Wells
Sequel International
145 Woodward Avenue
Norwalk, CT 06854
RE: The tariff classification of display case with display cap imported together and display cap imported separately from China.
Dear Mr. Wells:
In your letter dated July 21, 2011, you requested a tariff classification ruling.
The merchandise is described as the Display Highlighter Tower (Sequel item # GWT1 and GPOF item # CD3191L-R5-MA) and Display Tower Cap (Sequel item # GTOP1 and GPOF item # PTC001-F-C. The item is a floor mounted display case with interchangeable top sections used in retail locations to display watches. The tower measures 25 inches in width by 25 inches in depth by 55 1/8 inches in height, while the cap measures 25 13/16 inches in width by 25 13/16 inches in depth by 7 7/8 inches in height. The tower is composed of veneered and painted Medium-density Fiberboard (MDF), tempered glass, metal and other miscellaneous materials. The cap is composed of veneered and painted MDF, metal and other miscellaneous materials. This item is for retail display purposes only and will not be offered for sale to consumers.
Specification sheets for the tower indicate that the cost of the metal, which predominately is of the frame, exceeds that of the MDF and tempered glass, while the weight of the tempered glass, which includes all four sides of the unit, one top piece and its two shelves, far exceeds that of the metal. In square centimeters: the area of the metal and miscellaneous materials is 11,747 sq cm versus the tempered glass which is 37,038 sq cm. Specification sheets indicate that the cap is composed of 99% MDF.
Classification of goods under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied.
Under GRI 3 (b), HTSUS, the Display Highlighter Tower and Display Tower Cap are composed of different components (the tower: MDF, glass and metal) (the cap: MDF and metal), and are therefore considered composite goods. Composite goods under GRI 3 (b) will be classified as if consisting of the material or component which gives them their essential character, insofar as this criterion is applicable. When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of that material or component which imparts the essential character to the composite good.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the system. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The ENs to the HTSUS, at GRI 3(b) (VIII), state that the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
Upon careful consideration of the photos and the associated specification sheets for the Display Highlighter Tower and Display Tower Cap, this office believes that the glass represents the essential character of the tower with cap, imported together, and the MDF represents the essential character of the cap, when imported separately. The glass components predominate both in bulk (weight) and visual surface area, and moreover, the glass shelves perform the item’s function of holding watches for retail sales, while the glass panels protect the watches from dust, breakage, and theft. See Headquarters Rulings: HQ 086154 dated March 26, 1990 and HQ 961344 dated February 3, 1999. As for the cap, when imported separately, it is composed of 99% wood-like (MDF) material, and is therefore considered a wooden part of furniture. Accordingly, the tower with cap imported together, will be classified as a glass display case and the cap when imported separately, will be classified as a wooden part of that glass display case.
The applicable subheading for the Display Highlighter Tower with cap, imported together, will be 9403.89.6020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Furniture of other materials, including cane, osier, bamboo or similar materials: Other: Other: Other.” The rate of duty will be free.
The applicable subheading for the Display Tower Cap, when imported separately, will be 9403.90.7080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furniture and parts thereof: Parts: Other: Of Wood: Other.” The rate of duty will be free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division